Health Services Administration
Pre-Test Questions
Course Introduction
Health Services Administration is a multidisciplinary course designed to provide students with a comprehensive understanding of the management and organization of healthcare systems. The course explores the structure and functioning of healthcare institutions, including hospitals, clinics, and long-term care facilities, while emphasizing principles of leadership, strategic planning, health policy, finance, and human resources within the healthcare context. Students will gain insight into regulatory and ethical considerations, quality improvement, and the use of information technology in health services. Through case studies and practical examples, learners will develop the skills necessary to effectively lead, manage, and coordinate resources in a dynamic health care environment.
Recommended Textbook
Health Economics 6th Edition by Rexford E. Santerre
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16 Chapters
240 Verified Questions
240 Flashcards
Source URL: https://quizplus.com/study-set/3933
Page 2
Chapter 1: Introduction
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Sample Questions
Q1) Any point _______ the production possibilities frontier is efficient and attainable.
A) inside of
B) along
C) outside of
D) both a and b are correct
E) both a and c are correct
Answer: B
Q2) _______ help explain the law of increasing opportunity costs.
A) Differing consumer preferences
B) The characteristics of a pure market system
C) Advancements in technology
D) Imperfect substitutability of resources
E) Decreases in the availability of natural resources
Answer: D
Q3) Opportunity costs only occur when there is government involvement in markets such as health care.
A)True
B)False
Answer: False
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Page 3
Chapter 2: Health and Medical Care: an Economic Perspective
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15 Verified Questions
15 Flashcards
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Sample Questions
Q1) There is a constant relationship between increases in health and utility.
A)True
B)False Answer: False
Q2) _______ occurs when more patients are treated by a new medical intervention.
A) Income inequality
B) Treatment substitution
C) Social influence
D) Environmental impact
E) Treatment expansion
Answer: E
Q3) Process quality refers to the physical and human resources of the medical care organization.
A)True
B)False Answer: False
Q4) Better macroeconomic conditions have a positive overall impact on health.
A)True
B)False Answer: False
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Chapter 3: Cost and Benefit Analysis
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Sample Questions
Q1) Discounting involves _______ by (1 + r)<sup>t</sup> to obtain the _______ .
A) dividing the present value; willingness to pay
B) multiplying the future value; present value
C) multiplying the present value; willingness to pay
D) dividing the future value; present value
E) dividing the future value; willingness to pay
Answer: D
Q2) Which of the following is considered a shortcoming of the human capital approach?
A) It includes nonmarket returns
B) It is used to estimate the value of a human life
C) It includes labor market imperfections
D) All of the above
E) None of the above
Answer: C
Q3) Rationality implies that people will always make the correct choice.
A)True
B)False
Answer: False
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5
Chapter 4: Health Care Systems and Institutions
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Sample Questions
Q1) Fee-for-service reimbursement systems help reduce health care expenditures.
A)True
B)False
Q2) Market failure results from which of the following in the medical care market?
A) Lack of fully informed consumers
B) Social equity
C) Externalities
D) All of the above
E) None of the above
Q3) Switzerland's health care system can be best described as _______.
A) national health insurance
B) socialized health insurance
C) managed competition
D) public contracting
E) pluralistic
Q4) Increased consumer copayment requirements may help to reduce health care expenditures.
A)True
B)False
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Chapter 5: The Demand for Medical Care
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Sample Questions
Q1) Which of the following might occur after acquiring health insurance due to moral hazard?
A) A consumer visits a doctor more frequently.
B) A consumer washes his / her hands more frequently.
C) A consumer eats healthier.
D) All of the above
E) None of the above
Q2) As consumers purchase more medical care, the marginal utility per dollar spent on medical care increases.
A)True
B)False
Q3) Since the demand for medical care is derived from the demand for good health, an increase in income will decrease the demand for medical care.
A)True
B)False
Q4) Demand for most medical services in the U.S. has been found to be inelastic.
A)True
B)False
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Chapter 6: The Demand for Medical Insurance: Traditional and Managed Care Coverage
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Sample Questions
Q1) Reduced coinsurance rates are likely to _______ moral hazard costs and _______ the risk exposure of the consumer.
A) increases; decreases
B) decreases; decreases
C) increases; increases
D) decreases; increases
E) None of the above
Q2) If Sarah has an income of $50,000 when healthy, and faces a probability of 0.15 of losing $10,000 of this due to an illness, what is her expected income?
A) $17,500
B) $40,000
C) $48,500
D) $44,000
E) $16,000
Q3) Capitation payments made to physician group practices reduce the financial incentive for physicians to provide excessive medical services.
A)True
B)False
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Chapter 7: Medical Care Production and Costs
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Sample Questions
Q1) If the average product of dental assistants is _______, then the marginal product of that labor must be _______ its average product.
A) increasing; less than B) decreasing; equal to C) decreasing; less than D) increasing; equal to E) decreasing; greater than
Q2) The _______ of nurses is represented as the change in medical services provided by an additional unit of nurse-labor.
A) marginal product
B) marginal cost
C) average product
D) opportunity cost
E) none of the above
Q3) If a hospital is experiencing diseconomies of scale, it can reduce the average total cost of production by producing a greater quantity of medical services.
A)True
B)False
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9
Chapter 8: Structure, Conduct, Performance, and Market Analysis
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Sample Questions
Q1) If the market price is greater than the marginal cost, a profit-maximizing firm will choose to produce less.
A)True
B)False
Q2) When the demand for medical care _______, the real hourly wage for physicians should _______.
A) increases; increase
B) decreases; increase
C) increases; stay the same
D) increases; decrease
E) decreases; stay the same
Q3) A decrease in the demand for medical care will cause the real hourly wage of physicians to increase.
A)True B)False
Q4) Collusion is most likely to occur within monopolistic competition. A)True B)False
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Chapter 9: Government, Health, and Medical Care
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Sample Questions
Q1) Penalties levied on consumers for the purchase of "Cadillac" health insurance plans are meant to correct for the positive externalities associated with these plans.
A)True
B)False
Q2) Cigarette smoking is an example of _______.
A) positive demand-side externality
B) negative supply-side externality
C) no externality
D) negative demand-side externality
E) positive supply-side externality
Q3) If a price ceiling on physician services is going to be effective, it must be set ______ the competitive market equilibrium price to prevent the market from driving the price _______.
A) below; up
B) below; down
C) equal to; up
D) above; down
E) above; up
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11
Chapter 10: Government As Health Insurer
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Sample Questions
Q1) The Resource-Based Relative Value Scale System might cause an oversupply of certain medical services if the fee is set too high.
A)True
B)False
Q2) The Diagnosis-Related Groups System is a prospective payment system used by Medicare to reimburse physicians for medical care.
A)True
B)False
Q3) If a physician is currently operating at full capacity, an increase in Medicare reimbursement rates could lead to decline in access for privately insured patients.
A)True
B)False
Q4) Increasing access to medical care for low income individuals and households through the expansion of Medicaid eligibility requirements could decrease the quality of medical care received by current Medicaid beneficiaries.
A)True
B)False
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Chapter 11: The Private Health Insurance Industry
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Sample Questions
Q1) _______ is the situation where insured individuals alter their behavior because they are no longer financially responsible for the full cost of their behavior.
A) Moral Hazard
B) Asymmetric Information
C) Rationality
D) Scale Economies
E) Adverse Selection
Q2) Scale economies may serve as a barrier to entry in the private health insurance market by mandating a tiered benefit system.
A)True
B)False
Q3) _______ occurs when high-risk individuals subscribe to an insured group of low-risk individuals.
A) Moral Hazard
B) Asymmetric Information
C) Rationality
D) Scale Economies
E) Adverse Selection
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Chapter 12: The Physician Services Industry
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Sample Questions
Q1) Using a staff-model HMO, if there is an increase in the wages of physicians, how would the HMO likely respond to provide its current level of medical care?
A) Increase the number of physicians and decrease the number of physician extenders utilized.
B) Decrease the number of physicians and decrease the number of physician extenders utilized.
C) Increase the number of physicians and increase the number of physician extenders utilized.
D) Decrease the number of physicians and increase the number of physician extenders utilized.
E) None of the above
Q2) Over the past thirty years, the absolute number of active primary care physicians has _______ while the proportion of active primary care physicians has _______.
A) decreased; decreased
B) decreased; increased
C) increased; remained stable
D) increased; increased
E) increased; decreased
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Chapter 13: The Hospital Services Industry
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Sample Questions
Q1) Third-party payers representing a _______ market share have _______ negotiation power to obtain lower prices for hospital services.
A) small; greater B) small; reduced C) large; reduced D) large; greater E) both b and d
Q2) Certificates of need promote price competition amongst hospitals.
A)True
B)False
Q3) An increased HMO presence in insurance markets will likely increase premiums for consumers.
A)True
B)False
Q4) The managerial expertise model helps to explain why executives of non-profit hospitals may be overcompensated.
A)True
B)False
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Page 15
Chapter 14: The Pharmaceutical Industry
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Sample Questions
Q1) _______ advertising is supported by evidence showing that _______ detailed advertising of older products tends to be targeted at younger physicians.
A) Informative; more
B) Persuasive; less
C) Informative; less
D) Persuasive; more E) both a and d
Q2) Entrance of generic drugs into the market tends to _______ the price of the brand name drug since the remaining consumers of the brand name drug are typically _______ price-sensitive.
A) increase; more B) decrease; more C) increase; less D) not affect; equally E) decrease; less
Q3) The FDA might delay the drug approval process to decrease the likelihood of a type 1 error.
A)True
B)False
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Page 16
Chapter 15: The Long-Term Care Industry
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Sample Questions
Q1) Evidence suggests that nursing homes can substantially reduce their average total cost of production by increasing the amount of patients served due to substantial economies of scale.
A)True
B)False
Q2) Which of the following are reasons why larger amounts of the population fail to purchase long-term care insurance?
A) Adverse selection
B) Moral hazard
C) Intertemporal risk
D) Both a and b
E) All of the above
Q3) Prospective payment systems _______ costs, _______ quality, and result in _______ severe patient case-mixes.
A) raise; diminish; more
B) raise; improve; less
C) decrease; improve; more
D) raise; improve; more
E) decrease; diminish; less
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Page 17
Chapter 16: Health Insurance Reform
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Sample Questions
Q1) Which of the generic health plans would contain costs through highly competitive insurance markets?
A) Managed competition
B) National health insurance
C) Medical savings accounts
D) Individual mandates
E) Both a and d
Q2) An individual mandate system reins in cost through highly competitive medical insurance markets.
A)True
B)False
Q3) Health reform based on managed competition would be financed primarily through_______.
A) an income tax
B) individual contributions
C) employer mandates
D) premium payments
E) none of the above
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Page 18